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At the time of her grandson's birth, a grandmother deposits $13,000 in an account that pays 3% compounded monthly. What will be the value of the account at the
child's twenty-first birthday, assuming that no other deposits or withdrawals are made during this period?
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The value of the account will be $
(Round to the nearest dollar as needed.)

Respuesta :

The value of the account at the child's twenty-first birthday will be $24183.83.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

We know that the compound interest is given as

A = P(1 + r)ⁿ

Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.

At the time of her grandson's birth, a grandmother deposits $13,000 in an account that pays 3% compounded monthly.

Assuming that no other deposits or withdrawals are made during this period.

Then the value of the account at the child's twenty-first birthday will be

A = 13000(1 + 0.03)²¹

A = $ 24183.83

More about the compound interest link is given below.

https://brainly.com/question/25857212

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